Description
On November 13, 2014, Roberto Alonso, investment manager at Alpha Funds, received a report from his research team regarding the Carrefour Group. Alpha was interested in the distribution sector for several reasons. First, the sector is especially defensive against market uncertainty, since it deals with basic necessities. Thus, while the international markets may experience large fluctuations, the fund would have relatively little exposure to these and, in this way, Alpha Funds would incorporate the distribution sector into its portfolio thanks to its low volatility. On the other hand, the distribution sector is experiencing a phase of change with the introduction of new technologies such as online shopping, which opens up the possibility of generating income 24 hours a day, every day of the year. Within the sector, Carrefour appears to be a strong candidate for investing in growth.
Learning Objective
The case provides the opportunity to analyze the evolution of the Carrefour Group's financial situation before and during the global financial crises from 2007 to 2013.
The main educational objectives of the case are as follows: analysis of the financial situation; growth management and management of the funds' operational needs in periods of economic crisis; and the relationship between the economic situation and financial needs of the business.